It's Not True

If you've filed an insurance claim and the adjuster assigned by your insurance company tells you that he or she represents your interests and works for you, it's not true.

In California, there are three types of property claim adjusters that may be involved in your claim. They are company, "independent," or public adjusters. Of these three, only public insurance adjusters are legally allowed to represent you during a claim adjustment or negotiation. Only public insurance adjusters work for you in the settlement of your claim. Consider the following definitions from the California Insurance Code for all three of these types of adjusters:

1. Company Adjusters: "Company adjusters means the insurance adjusters who are mployees of your insurance company. They represent your insurance company and are paid by your insurance company. They will not charge you a fee and are not individually licensed or tested by the State of California." [California Insurance Code, section 15027(v).]
   
2. Independent Adjusters: "Independent adjusters means the insurance adjusters who are hired on a contract basis by your insurance company to represent the company in the settlement of the claim. They are paid by your insurance company. They will not charge you a fee." [California Insurance Code, section 15027(v)(3).]
   
3. Public Adjusters: "Public adjusters means the insurance adjusters who do not work for your insurance company. They work for you, the insured, to assist in the preparation, presentation, and settlement of your claim. You hire them by signing a contract and agreeing to pay them a fee or commission based on a percentage of the settlement, or other method of compensation. Public adjusters are required to be licensed, bonded, and tested by the State of California to represent your interest only." [California Insurance Code, section 15027(v)(1).]

The above definitions make clear what I said at the start: Only public adjusters can represent you or work for you as your claims adjuster. Further, they are the only adjusters who are required to be tested and individually licensed after one year of serving as an interim public adjuster. You pay them, and they adjust your claim and negotiate a settlement for all of your covered losses and damages. This saves you both time and energy by releasing you from the difficult processes of inventorying, evaluating, and valuing your damaged or destroyed dwelling, buildings, other structures, and personal or business property.

"Independent" adjusters are not independent in the sense that they are "neutral," that is, impartial adjusters working for both you and your insurance company. They are only "independent" in that they work on a "contract basis" with your insurance company. But make no mistake about it: "Independent" adjusters, like company adjusters, work exclusively for insurance companies. They cannot legally represent or work for you.

Why, then, do many insurance companies and their claims adjusters present themselves as "your" adjuster, or one that works for you or on your behalf? The reason is clear: Though it is not true that they work for or represent you, they may tell you that they do in order to disuade you from hiring your own adjuster, a public adjuster. If insurance companies and their adjusters can keep you from hiring a public adjuster, and if you are made to believe that the insurance company or its adjusters are indeed "on your side" by being your representative and by working for you, then you will be completley reliant on them to settle your claim. If the insurance company is not only the party paying your claim but also the sole entity responsible for how much you should be paid, then the financial benefits to the insurance company are extraordinary. Further, if they alone are left to investigate your claim, then the full extent of investigation into coverage and value rests with them.

Having worked for insurance companies for ten years and having been a licensed public insurance adjuster for about three and half years, I can tell you that if you have a property insurance claim and if you do not consider hiring your own adjuster (a public adjuster), then you are taking an extreme and unnecessary risk with your claim settlement. I will also tell you that it's in your best interest to consult with a licensed and qualified public insurance adjuster for any property claim you file. Finally, I will say again that if any insurance company or "independent" adjuster tells you that he or she represents or works for you, it's not true.

For more information about public, company, and "independent" adjusters, your property claim rights, and how Premier Claim Consultants can assist you, visit my website at http://www.premier-claim-consultants.com/.